When you’re making a major financial decision, timing is just as important as figures. While the market may be prime pickings at any given point, your personal life and finances may not be up to the task for buying or refinancing. It all depends on what’s going on in your life.

You should also be aware of your own timeline, such as whether you plan to move, if you want to switch jobs, family planning issues, and other types of life changing events that will be impacted by what you do with owned property. Here are a few tips about when it’s a bad time to refinance your home.

When the Options Don’t Add Up
The first step you need to look at when you’re considering refinancing is what’s available, and if the numbers match your budget. Hop on Property Guru to look at refinance options and see if something fits your desired numbers. If you switch to another bank to get a lower introductory rate during a lock-in period, remember that this is something that you can’t undo.

You’re making a bigger commitment than if you simply switched to a plan without a lock-in period. It also depends on whether you’re comfortable committing to fixed rate. On the other hand, a floating rate may be great when SIBOR rates are low, but can also suffer as the real estate sector fluctuates. All of these elements will matter as you plan to refinance, and if your own budget and circumstances don’t fit, don’t try to force it. Wait until you’re ready to go forward, and don’t settle for something that’s only part of what you’re looking for.

You’re Unsure About the Future
Deciding between fixed and floating interest rates is an important part of deciding to not only purchase property, but also refinance. According to the Straits Times, as the SIBOR rises, the base rate of mortgages rise, and then the bank tacks on between 0.75 to 1.25 percent for consumers.

Fixed rates will also be higher because banks charge a special premium for guaranteed consistent rates. Therefore, there’s a toss-up between committing to a single rate that may be better or worse at any given time as the market fluctuates, which is more secure in some ways, or going for the floating rate.

They both have their drawbacks and perks, but if you’re unsure about the future, you may not know what to do. If you’re not ready to commit to a single fixed rate where you’ll also most likely pay more fees to the bank for the perk of security, then it’s not the right time to refinance.

You Don’t Have Time
Refinancing takes a lot of research and consideration, and if you don’t even have time to sit down and really review them, it’s not the right moment to go through with it.

One of the most common reasons that homeowners end up unhappy with their plans is because they didn’t take the time to sit down with a financial advisor or the bank.

There are a lot of details, legalese, and conditions that apply when you refinance, and you can’t just jump on the first thing that seems like an attractive package. Even as the SIBOR is down and rates are good, that’s not a reason to go in headfirst if you don’t have a plan.

Meeting the Right Conditions
There’s also the scenario that you simply don’t meet the qualifications to refinance with good options. If you’re still in a lock-in period from another bank, you can’t switch without a lot of headaches.

For example, Citibank offers a refinance package to homeowners who have passed the lock-in period on an existing mortgage and are currently paying an interest rate higher than the market rate.

You can get some great deals if you’re in the right position to do so, but if your current mortgage is under conditions like a lock-in rate or other you’re paying a rate that’s not higher than market rate. Make sure you meet all the different requirements to maximize the benefits you can get out of refinancing. There’s no point in moving ahead if you’re going to miss out on different opportunities, especially if you’re in a lock-in rate. On the flipside, also bear in mind that if you enter a lock-in rate, then the same issue will apply going forward. If you’re not sure you’re getting the absolute best deal under ideal conditions for a refinance package, wait it out.
 

The fact is that there’s really no black and white answer about refinancing, because there are so many different options. The market rates may be great, but if you’d rather pay for a fixed rate because it provides a greater sense of security for the future, you may choose to go in that direction. It all depends on your individual situation and needs.